Custer chronicle. [volume] (Custer City, Black Hills, D.T. [S.D.]) 1880-1890, 1887-05-28
PACIFIC INQUIRY.
Further investigation Of Jay Gould.

NEW YORK, May 1S.-Jay Gould resumed
the witness stand In the Pacific railroad in.
vestigati9n to-day. He presented a statement
OF his dealings in securities Of the Union
Pacific and Kansas Pacific railroad. He also
detailed u statement showing principal and
interest by the consolidated mortgage arrange
ment, as well as q schedule Of his dealings in
Kansas Pacific securities.
Commissioner Anderson desired to know
why 1t was to the advantage Of the consol-
idated company to have Kansas Pacific redeem
Denver Pacific bonds instead Of trustees Of
the consolidated mortgage.
Gould said: "Tbe consolidated company
would make new bonds and threw it into an
\ outside trust, and the scheme which was
agreed upon was the only one that could have
been made to the benefit Of the company. Not
ali individual made u cent out Of this transac.
ton of Denver Pacific stock, and | am very
glad OF the opportunity to put the final nail
In that coffin.n
Gould continued Ny associates in Union
Pacific became alarmed within a month after
my Missouri Pacific purchase, and came on to
bind me to consolidation. | signed a pager
agreeing 10 IL between the time of NV resig.
~ aS hllNkA''l vi lht L " 4 NNlhNy taAA-
AIRY 10, 1850" Gould felt that consolidation
would be- a great detriment 10 his interests.
The extension Of the Missouri Pacific 10 Den
yer and San Francisco, as lie contemplated,
would have destroyed the Union Pacific. He
had often thought OF the rights Of the gov
eminent, but after the passage OF the Thur
man bin he thought the government was
trying to
SQUEEZE MORE OUT OF A TURNIP
4ha,, tl.ra .uoe T., ~ lIto ,la, tInn .voo tn
build a road from Omaha to Ogden, just out
side the right-of-way, for $4,000 600. With
reference to the governments claim, he made
an offer before the judiciary committee Of
the senate TO pay cach claim in cash at It's
present worth. Sydney Dillon was with him
when the offer was made,
Anderson questioned this, but Gould reit-
Grated this statement, and said the committee
took no action, claiming his computation in
correct, and the interest did not mature with
the bond.
Gould then related the circumstance Of his
resignation ao director, giving as his reason
for resigning that be did not think IL proper
for him TO hold such a position while obliged
TO enter into heavy transactions as an indi-
yidual.
Gould was examined at length concerning
the branch road securities which he turned in
for consolidation stock, but nothing OF par.
ticular interest was elected.
"For my branch line securities | was paid
1854 shares of new consolidated stock, con.
tinued Gould, "and the Kansas Pacific agree
ment TO pay me half In bonds and half In
stock of their company WAS not adhered to.
! sold my stock at just what | put It In for,
and II there WAS a profit Of 81 ,soO, 900 realized
by the pool
THE -.AwYERS MUST HAVE GOT 1T.
/ didn't receive a cent. AS regards my In.
terest in scauisition of branch roads by the
Union Pacific, / bought the Denver and South
Park road for 81, 000, 600. The Utah Northern
! bought when 1t Was very poor-paying prop.
erty. ] built 1t up. When Dillon came &c
me and said | must turn II into Union Pacific
/ did Sc at its cost price TO me. The Union
Pacific made between $500, 900 and 900, 00d
out OF this transaction
Witness said be thought the last visit he
made to Washington on Union Pacific bust.
pess was at the time the Thurman bill was
under consideration. He afterwards remen-
bered, however, he was n Washington afte.
that. "l know OF no occasion when stock,
bonds or securities Of the onion Pacific were
used 10 influence legislation In favor Of that
road" 1etantly added the witness, land
don't think such an occasion ever existed"
Gouldjs examination will be continued 70.
morrow.